It’s too early to predict overall sales for 2013, but one key indicator—the number of aircraft for sale—continues to tick lower, suggesting that a recovery is still ongoing. In fact, the number of available jets and turboprops is now at its lowest point in roughly five years.

An airplane seller who was acting as his own broker told me that he’d been abandoned at the sales altar on three recent occasions, each time because of issues with buyer financing. “Welcome to the club,” I thought.

The used jet market has had to ­contend with more than its fair share of obstacles over the past few years and 2012 didn’t offer any relief. They say that when the stock market moves up it climbs a wall of worry and that’s probably not much different from how jet buyers view the aircraft market. That said, there may be a bit less to worry about than there was last year at this time.

Just as different singers often offer widely varying interpretations of the same song, different observers view the used jet market from diverse vantage points. Moreover, a buyer’s or seller’s perspective on the market can make, impede or prevent a sale.

With U.S. stock indexes rising and the economy showing signs of life, business jet buyers seem to be returning to the market. Much like horses at the start of a race, they appear to be champing at the bit, waiting impatiently for the starting gate to open.

Considering what 2011 served up in terms of worldwide calamity–from government overthrows to devastating natural disasters to a global debt crisis–it's a wonder anyone had the confidence and wherewithal to buy a corporate jet. Yet the year saw a continuation of 2010's resurgence of buyer activity. This mild but sustained trend is providing a sense of relief for many sellers.

If the super computers that some blame for Wall Street’s recent wild swings were used to trade aircraft, it’s likely they would be programmed to buy right now. But aircraft purchases and sales still occur the old-fashioned way, which can involve deal-stalling high emotions and conflicting personalities.

Activity in the preowned market continues unabated, yet at a measured pace. In fact, inventory levels are now about where they were in October 2008 (and climbing for almost a year), when the calamity on Wall Street reverberated around the globe and dealt a devastating and unprecedented blow to the new and used aircraft business.

Spring has sprung and the preowned aircraft business is still germinating. A slow and orderly recovery continues its linear track to the lowest inventory levels since the market peaked in the fourth quarter of 2008.

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Quote/Unquote

“Let me be straight with you. What I'd rather have is an airplane. We just had a third kid. I don't like flying commercial. I like to take my family to Hawaii. When I go east, I'd like to have pilots I know.
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